Trump, Xi to meet as US-China trade tensions reignite

President Donald Trump and President Xi Jinping will meet later in October amid renewed trade strain following the United States’ threat to impose additional 100 percent tariffs on China.

The American leader had explained that the new tax, effective early next month, was in retaliation for the Chinese government’s announcement of major expansion of rare earths export controls.

In an interview with Fox Business Network on Monday, U.S. Treasury Secretary Scott Bessent said tensions have “substantially de-escalated” since the communications which were held over the weekend.

The talks will resume when senior officials from both sides meet again this week in Washington D.C. on the sidelines of the World Bank and International Monetary Fund annual gatherings.

Bessent noted that the 100 percent tariff “does not have to happen,” assuring that the United States-China relationship “is good” despite the president’s announcement last Friday.

“President Trump said that the tariffs would not go into effect until November 1,” the Secretary noted. “He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.”

Trump and Xi are expected to hold a private session during the Asia-Pacific Economic Cooperation summit. The theme seeks to strengthen connectivity, foster innovation through digitalization, and achieve inclusive growth.

On Monday, China’s Foreign Ministry said concerns should be addressed through dialogue and on the basis of mutual benefit, vowing that the nation will do what is necessary to protect its legitimate rights and interests.

“Threatening high tariffs is not the right way,” according to spokesperson Lin Jian. “The U.S. should correct its approach and act on the common understandings the two presidents reached in their phone calls.”

Meanwhile, the U.S. has condemned China’s ramming and water cannoning of a Philippine Bureau of Fisheries and Aquatic Resources vessel close to Thitu Island in the South China Sea.

State Department deputy spokesperson, Thomas Pigott, conveyed America’s solidarity with the Philippines “as they confront China’s dangerous actions which undermine regional stability.”

Pigott said China’s territorial and maritime claims in the South China Sea and its “coercive actions” to advance them at the expense of its neighbors undermine regional stability and flout its commitments to resolve disputes peacefully.